Penalties for underpayment of estimated tax


An individual with AGI equal to or less than $150,000 in the prior year may generally avoid penalties for underpayment of estimated tax in each of the following cases with the exception of:

A) estimated tax is less than $1,500.

B) 90% of the tax due for the current year is paid.

C) 90% of the tax due for the current year is paid when computed on an annualized basis.

D) 100% of the actual tax liability for the prior year is paid.

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Accounting Basics: Penalties for underpayment of estimated tax
Reference No:- TGS045779

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